‘Reusable’ digital identity applications to reach $266B by 2027 – Liminal report
A new report from digital identity advisory firm Liminal claims the ‘reusable’ identity market may grow from $32.8 billion in 2022 to $266.5 billion by 2027 at a compound annual growth rate (CAGR) of 68.9 percent.
In the report, Liminal describes reusable digital identity applications as those that can “securely store verified information on an individual that is easily federated when transacting with a new entity, and enables a many-to-many relationship between consumers and organizations.” This means web users can use one trusted online ID for any site which accepts it rather than having to start a new profile each time.
According to the company, the growth of reusable digital identity applications is currently mainly driven by the demand for interoperable identity credentials that can streamline customer onboarding and post-onboarding customer experiences.
“Over the past five years we’ve seen rapid evolution in the digital identity market – from the adoption and proliferation of federated identity schemes to more secure and privacy-enhancing onboarding programs,” writes the company’s CEO Travis Jarae.
To facilitate the adoption of these solutions, Liminal believes companies and governments should increasingly focus on the development of interoperable networks, public-private partnerships, and fully-fledged, digital ID ecosystems.
“As digital identity technology continues to improve and governments around the world adopt eIDs, we expect a shift from transaction-based identity schemes to reusable identity ecosystems,” Jarae says.
Additionally, the executive believes that while public-led schemes will initially dominate the total addressable market (TAM), private reusable identity will account for 60 percent of the market by 2027, driven by an expansion of public and private initiatives and a consequent need for public-private partnerships (PPPs).
“This report represents an early POV based on hundreds of engagements with leading identity vendors and identity-forward enterprises on what reusable identity is, what the market opportunity can be, and how to get there,” Jarae writes.
“We do not have a clear path defined nor business models validated, but that’s the fun part for those who want to attempt to capture the holy grail of identity.”